STAND. COM. REP. NO. 3358

                                   Honolulu, Hawaii
                                                     , 2000

                                   RE:  H.B. No. 2154
                                        H.D. 2
                                        S.D. 2




Honorable Norman Mizuguchi
President of the Senate
Twentieth State Legislature
Regular Session of 2000
State of Hawaii

Sir:

     Your Committee on Ways and Means, to which was referred H.B.
No. 2154, H.D. 2, S.D. 1, entitled: 

     "A BILL FOR AN ACT RELATING TO COMMUNITY SERVICES,"

begs leave to report as follows:

     The purpose of this bill is to clarify the functions of the
Department of Human Services with respect to providers of various
services that choose to transfer their programs from the Office
of Community Services to the Department.

     In particular, this bill requires the Department of Human
Services to administer services to assist refugees and immigrants
and train welfare recipients to secure work, including
appropriations, applying for and disbursing grants, and
contracting for purchase of services, for providers of these
services who choose to transfer their programs from the Office of
Community Services to the Department.

     In addition, this bill transfers the powers and duties of
the office regarding services for refugees and immigrants and
work training for welfare recipients to the Department of Human
Services, subject to agreement between the Office and the
Department to determine the exact nature of the transfers.


 
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     Your Committee finds that the Office of Community Services,
which is administratively attached to the Department of Labor and
Industrial Relations, is mandated to provide needed programs and
services for Hawaii's economically disadvantaged, immigrants, and
refugees.  The Office contracts programs and services on behalf
of the state and federal governments primarily to private,
nonprofit service providers.

     Your Committee further finds that the Office of Community
Services was established primarily to receive federal grants from
the United States Department of Health and Human Services under
42 United States Code, Section 9901 et seq.  The main purpose of
the federal grants was the "reduction of poverty, the
revitalization of low-income communities, and the empowerment of
low-income families and individuals in rural and urban areas to
become fully self-sufficient", particularly those trying to
transition out of welfare (42 U.S.C. §9901).

     Your Committee notes that much of the funding for the Office
is applied toward purchase of service contracts for community
action programs, which are concerned with serving welfare clients
and welfare-to-work transition programs, including programs for
immigrants.  Your Committee further notes that some providers
prefer to be transferred to the Department of Human Services,
while others prefer to remain within the Department of Labor and
Industrial Relations for administrative purposes.

     Accordingly, your Committee has amended this bill to:

     (1)  Initiate the transfer to the Department of Human
          Services of:

          (A)  Those community service programs that will serve
               to maximize federal block grant funding, along
               with federal block grant funds for fiscal year
               2000-2001; and

          (B)  Any other community service programs that desire
               to move to the Department of Human Services for
               any other reason;

     (2)  Require the Advisory Council for Community Services
          within the Office of Community Services to advise the
          executive director as to those programs that should be
          transferred to the Department to maximize block grant
          funding;


 
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     (3)  Require the Director of Human Services to provide and
          administer necessary support services to those programs
          that have transferred to the Department from the Office
          of Community Services; and

     (4)  Make technical, nonsubstantive changes for the purposes
          of clarity and consistency.

     As affirmed by the record of votes of the members of your
Committee on Ways and Means that is attached to this report, your
Committee is in accord with the intent and purpose of H.B. No.
2154, H.D. 2, S.D. 1, as amended herein, and recommends that it
pass Third Reading in the form attached hereto as H.B. No. 2154,
H.D. 2, S.D. 2.

                                 Respectfully submitted on behalf
                                 of the members of the Committee
                                 on Ways and Means,



                                 ________________________________
                                 CAROL FUKUNAGA, Co-Chair



                                 ________________________________
                                 ANDREW LEVIN, Co-Chair

 
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